Authority May Buy Private Water System

August 25, 1993|by BOB LAYLO, The Morning Call

The Nesquehoning Borough Authority is considering taking over the water system that supplies Hauto Valley Estates.

The authority, which met yesterday afternoon with state Department of Environmental Resources officials, authorized solicitor William McDonald to see if John "Sonny" Kovatch, owner of the Hauto Valley Estates system, wants to get out of the water business. McDonald will find out what Kovatch wants for the equipment and two wells.

Hauto Valley Estates has 72 homes.

The authority also told engineer Terry Riley from Alfred Benesch & Co. to study the cost of taking over the system. Riley will break down the cost to each customer using funding from different sources. Authority customers now pay $48 a quarter.

Kovatch has recently formed a water company. He is still buying water in bulk from the authority to supply Hauto Valley Estates.

Marty Gilligan from DER told the authority its decision on Hauto Valley Estates could affect its funding for a $3.1 million water improvement project that switches supply from reservoirs to wells and replaces some old lines.

Gilligan said if taking over the Hauto Valley system is cost-effective and the authority balks, it could hurt Nesquehoning's chances of obtaining a low-interest PennVest loan.

The authority could also float bonds or get a loan from Farmers Home Administration. Those options would have higher interest rates.

"You have to do the most cost-effective system to get the funding," Gilligan said.

Gilligan said he would like to see the authority take over the system.

Gilligan said Kovatch has dug two wells that produce 200,000 gallons per minute of clean water a day. Gilligan also said the Carbon County Redevelopment Authority has a large storage tank that it would give the authority.

However, authority engineer Ron Tirpak said the Hauto Valley system was not laid out properly.

"We don't want to take over a Rube Goldberg situation," Tirpak said.

Tirpak also said some pipes of less than 4 inches would need to be replaced.

Gilligan promised he would make sure the system is workable.

"I'm not going to give you a system I don't believe in," Gilligan said. "I'm not going to give you something the commonwealth won't permit."